Study for the Series 6 Exam

Candidates for the Series 6 Exam must use care in studying FINRA's rules on Communications with Customers. These rules are involved and must be studied carefully. For example, can you explain the difference between retail communications and correspondence? Or are they the same thing treated in the same way?  Retail communications need to be filed with FINRA's Advertising Regulation Department, but correspondence does not need to be filed. However, both retail communications and correspondence need the written and dated approval of a principal of the brokerage firm before they may be used. So communications with the retail public gets complicated! Bob Eder in his Study for the Series 6 Exam devotes all of Chapter One to Communications with Customers. Here is a sample of Bob Eder's treatment and discussion: PRACTICE QUESTION FINRA has specific strict rules regarding the use of retail communications. June is a representative. She considers some of the definitions included i...

FINRA publishes a Content Outline for the Series 6 Exam. Under Function 1 - "Seeks Business for the Broker Dealer from Customers and Potential Customers," FINRA's Content Outline lists required knowledge of the standards and required approvals for Public Communications. The primary FINRA rule governing Communications with the Public is Rule 2210. Before you sit for the Series 6 Exam, make sure that you are familiar with the main provisions of this Rule. Bob Eder has a full treatment of Rule 2210  Communications with the Public  in his Study for the Series 6 Exam . Here is an example of Bob Eder's treatment: Correspondence (1.1) FINRA defines "correspondence" as any written or electronic communication that a brokerage firm or representative sends, distributes, or makes available to 25 or fewer retail investors, within any 30-calendar-day period. If a representative sends material to more than 25 retail customers within any 30-day period, then it would be ...

Okay, so you are becoming licensed as a Series 6 representative. Before you may open a new account, you must first obtain important information about that customer. This gathering of information is required by the U.S. Patriot Act to prevent criminal money laundering and/or tax avoidance. In accord with the Patriot Act, the U.S. Treasury and the SEC have established a Customer Identification Program (CIP) that controls brokers when opening new accounts. FINRA's Content Outline for the Series 6 Exam includes customer screening and customer identification program in Section 2.2. Series 6 candidates, therefore, should expect to see questions on these topics on the test. Bob Eder covers these rules in detail in his Study for the Series 6 Exam . Here is a sample of Bob Eder's treatment: "Required Customer Information (2.2)" "Every brokerage firm must assure that its representatives obtain identifying information about a new customer before opening an account for tha...

Plan on taking the Series 6 exam? If so, make sure that you study and know the rules on customer screening and the customer identification program. FINRA's Content Outline requires knowledge of customer screening and the customer identification program in Section 2.2. Bob Eder presents a detailed treatment of customer screening in his Series 6 manual, Study for the Series 6 Exam , on pages 91-94. Here is a sample of Bob Eder's discussion: "Customer Identification Program (CIP) (2.2) As required by the USA Patriot Act, the SEC and the U.S. Treasury have adopted rules requiring that broker/dealers establish and operate a "customer identification program," or CIP. "Verification of Customer Information (2.2) A broker/dealer must verify the accuracy of the information given by the customer. This can be done in one of two ways: either by checking documents or by non-documentary means." Here is the  link to FINRA's Content Outline for the Series ...

The Series 6 exam asks questions about  account registration types, such as tenants-in-common, joint tenants with rights of survivorship, community property, sole proprietorships, partnerships, corporations, and unincorporated associations. How do I know that the Series 6 asks questions on various account registrations? Section 2.1 of FINRA's Content Outline lists the v arious types of account registrations as Series 6 required knowledge . Therefore make sure that you can describe and define each of the various account registrations. For example, what is the difference between tenants in common and joint tenants with rights of survivorship (JTWROS)? Joint tenancy is common among married couples. It means that if one of the partners or "tenants" die, his or her portion will automatically pass to the surviving partner. However, tenancy in common does not automatically pass a deceased tenant's share to the surviving tenant. The deceased partner's share simply goes in...